Chinese e-commerce major Alibaba is all set to infuse up to $300 million (over Rs 1,900 crore) in online grocery player, BigBasket, media reports citing industry sources have said.
News agency PTI, citing sources that did not wish to be identified, reported that the deal is expected to be announced in the next few weeks.
The deal, if through, is expected to come as a huge shot in the arm for BigBasket in its fight against rivals Grofers and e-tailing giant Amazon.
On the other hand, investing in BigBasket would help Alibaba add more muscle to take on US-based rival Amazon, while for Paytm, the move would further strengthen its play in the Indian e-commerce space.
In November, the Chinese e-commerce major had sought approval of the Competition Commission of India (CCI) for acquiring a stake in BigBasket.
Amazon India has already received government's approval for its proposed $500 million for retail in the food sector. It is also ramping up its business in the segment with Amazon Pantry and Amazon Now.
BigBasket has operations in Bengaluru, Hyderabad, Pune, Mumbai, Chennai, Delhi-NCR, Ahmedabad, Patna, Kolkata, Jaipur, Vijayawada, Indore, Punjab and Lucknow.
The company has raised over $200 million from investors including Abraaj Group, Bessemer Venture Partners, Growthstory, Helion Venture Partners, IFC and Sands Capital.
The online grocery segment is projected to witness a strong growth over the next few years in India.
According to a report by Franchise India, the online grocery market is expected to be Rs 2.7 billion markets by 2018-19.
(With PTI inputs)
